Hi everyone) Assume you are a consistently profitable trader who is recording profits every day/week/month then how much and how often should you withdraw your profit money?
If we withdraw more profits then we can,t risk bigger amounts and hence it also reduces our future profit potential and if we don,t withdraw then it,s dangerous to withdraw a big amount rarely or once from your broker,also it,s a bit demotivating.
Consistent profitable traders here please tell me about your withdrawl stategy.
Thanks)
I don’t keep more than 20% of my trading capital with my broker, which is enough for 4 trades. When it exceeds that I’ll withdraw down to 10%. No reason to keep all your money there, it’s much safer in my bank account.
This is a particular interesting question. Correct me if I am wrong but it appears you made a nice profit and lost it and the cycle repeats itself…I am right?
To quote again some of the world’s best traders, withdraw your profits and do something nice, of course you need margin to swing big positions but that said build your capital to a certain point and then think of taking home the bacon. Some other good traders will say take a small percentage but I can understand if you are trading mini lots it is senseless seeing those profits won’t buy you more than a meal at nandos.
If you are already trading at least 100k lots you should at worse case if you are trading right make at least $100 a day gross on average (I hope most will agree) of course not everyday is good but losses should always be small (that is a science one cannot teach). In that case withdrawing 50% every week is reasonable. This just keeps the paper money real or I am sure we can all remember the restaurant scene in Wolf of wall street-- “Take your clients money and put it in your pocket” Commission for brokers is still cold hard cash no matter how small, traders can make more but are always vulnerable to brokers doing just that… Convincing you to capitalize and trade more.
Don’t take my advice, just take a look at Jesse Livermore who at one point owed his broker after pissing away more than $1m in the early 1900’s saving a bad bet.
I trade a +100k account. I needed more than 6 intense years to grow that. After that I begin to withdraw bimonthly my live expenses plus a retirement plan fee and let the account growing too.
In my beginnings I didn’t even think about this… Only focused on growing the account year by year because that way you exponentially size up your margin, the size lot, the leverage… to the point you want.
I agree with what you just said) No i haven,t lost some nice profit so far but in the past 2-3 weeks i have gained 7% return on investment and it looks like i am on the right path.So i am looking for some solid and effective long term withdrawal strategy. Well i have decided to withdraw 50% of my profits after reaching my growth goal ,in this way i am putting some money in my bank account and also having a potential to trade bigger lots for future growth.
i think my small dusty book reads “80% of anything classified as profit should be withdrawn on the 80th day of each quarter” .
I suppose about 75% is a good amount.
in my plan i hope i cAn with draw about 100$ per week